Selling low-margin products online

In this episode, Alex explains how to make online advertising profitable for low-margin products.


Selling low-margin products onlineHi, my name’s Alex Cleanthous, chief innovation officer at Web Profits, and today, I’ll be explaining how to make online advertising profitable for low-margin products.

Now for those of you who don’t know me, I have a stutter and it comes out when I get excited… and this stuff is exciting. So let’s get into it.

In the last few months I’ve spoken with a few different companies who all have the same challenge – make online advertising profitable for a low-margin product.

Some of them were traditional retail businesses that wanted to move online. Others were startups with big goals for their first year.

They engaged with us to create an online marketing strategy that would not only be profitable, but help them grow fast.

The challenge with low-margin products is that you can’t use most forms of online advertising because the cost of making the sale is usually a lot higher than the margin you make from the sale.

You can invest in SEO, which is one of the only direct forms of advertising that can be profitable in and of itself, but you’re putting all of your eggs in one basket and if Google changes the landscape, you don’t have any other way to drive sales – and that’s risky.

To have the peace of mind that you can handle any changes that happen in the online world (and there are a lot) you need to be able to spend money on advertising and generate a profit from that spend.

So what can you do?

You can focus on building up your email database, and then converting them over time using email marketing and remarketing.

Let me explain…

In the last episode I spoke about the offer-conversion funnel, where the conversion rate is higher at the top of the funnel.

With a low-margin product this is more important than ever because it is extremely difficult to make the sale the first time.

So instead of advertising your product directly, you focus all of your advertising driving prospects to a free offer where they enter their email address to receive something for free.

You can offer a special report, a whitepaper, a free video, a free interview, a PDF download… basically anything that your prospects have a desire to learn about (and that aligns with what you sell).

You can then use email marketing to convert them into customers over time.

And the best part about email marketing, is that aside from the low monthly cost of the email marketing service, you don’t have any other costs sending the email.

I’d suggest you email them at least once a week, and mix up your emails between helpful / informative emails, and product-focused emails.

They say that ‘the money is in the database’ for any business marketing online – that statement is more relevant than ever for companies selling low-margin products.

At Web Profits we want to change the way business is done online. To find out more or to get in touch, simply visit

I hope you enjoyed this episode of Web Profits TV and I look forward to speaking with you in the next video.

Alex Cleanthous

Alex Cleanthous

Chief Innovation Officer at Web Profits

Alex Cleanthous is Chief Innovation Officer at Web Profits. With more than 10 years experience in online marketing, Alex is always on the lookout for smarter, faster and more scalable ways to achieve maximum growth with minimum spend.